Memorandum submitted by netCUDA
This brief document sets out details of the
netCUDA model for credit unions for tackling financial exclusion.
The summary below draws attention to how this model addresses
the issues laid out for this enquiry:
1. ACCESS TO
BANKING SERVICES
AND 2. ACCESS
TO AFFORDABLE
CREDIT
The key note of the netCUDA model is accessibility,
both in physical terms and access to products. The netCUDA model
is IT based which enables it to be rolled out throughout a credit
union's common bond area, eg a county, unitary authority, wherever
a demand for services is identified. The IT enables the use of
PayPoint, Post Office and ATM facilities. The netCUDA model credit
union provides a gateway to access a range of financial services:
traditional credit union services plus budget accounts, emergency
loans, insurances and CDFI.
3. FINANCIAL
EDUCATION AND
ACCESS TO
FINANCIAL ADVICE
netCUDA model expects partnership arrangements
with providers of financial advice about debt. We also engage
in promoting financial education in schools and provide a junior
savings service.
4. INCENTIVES
AND BARRIERS
TO SAVING
FOR PEOPLE
ON BELOW
AVERAGE INCOMES
N/A.
5. THE ROLE
OF THE
GOVERNMENT, THE
FINANCIAL SERVICES
AUTHORITY AND
OTHER BODIES
AND ORGANISATIONS
IN PROMOTING
FINANCIAL INCLUSION
Credit union support through the Growth Fund,
to deliver loans to low income families in specified deprived
areas, will fail to deliver to large areas/tracks of population
living in pockets of deprivation. netCUDA model delivers to low
income families anywhere in a common bond area.
6. THE BENEFITS
OF FINANCIAL
INCLUSION AND
THE EXTENT
TO WHICH
FINANCIAL INCLUSION
MEASURE CAN
CONTRIBUTE TO
COMBATING POVERTY
AND REDUCING
BARRIERS TO
EMPLOYMENT
Financial policy in conjunction with local bank
accounts allows people to save small sums and take small loans
without the worries of going to extortionate lenders. This improves
their quality of life, their health and increases their ability
to gain and retain employment. The interest charged is invested
back into members of the community through the credit unions annual
dividend which keeps money in the community.
We have brought the elements of our model together
in one document.[217]
A detailed plan is available on request.
February 2006
217 Not printed. Back
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